A Big Day for ETFs as 5 Sponsors Launch New Products


Northern Trust’s FlexShares Rolls Out Two ETFs Based on ESG Principles

Joining the new wave of ETF products based on Environmental, Social and Governance, or ESG, principles, FlexShares launched the FlexShares STOXX US ESG Impact Index Fund (NasdaqGM: ESG) and FlexShares STOXX Global ESG Impact Index Fund (NasdaqGM: ESGG) as a way to help investors generate improve risk-adjusted returns. Companies with ESG key positive indicators h ave shown to positively impact shareholder equity. ESG has a 0.32% expense ratio and ESGG has a 0.42% expense ratio.

VanEck Debuts USD-Denominated Emerging Market Bond ETF

VanEck also expanded on its fixed-income suite, launching the VanEck Vectors EM Investment Grade + BB Rated USD Sovereign Bond ETF (NYSEArca: IGEM), which tracks U.S. dollar-denominated emerging market investment-grade sovereign bonds. Emerging debt has grown in popularity in recent months as a more attractive source of yields, with USD-denominated EM sovereigns generating yield premium of 49 basis points over U.S. corporate investment-grade bonds and 220 basis points over 10-year U.S. Treasuries over the past five years, according to a press release. For those who are reliant on regular payouts, the fund also provides monthly distributions. IGEM has a 0.45% expense ratio.

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